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The main problem might be a big problem with the disk tray. There might be an faulty wire that has lost connection and if your disk wont event turn on, there might be a problem with the power supply that supplies the cd tray. If the disk opens and closes but doesnt read and wont say tray is in and keeps saying open tray, there might be a small fracture on some of the wires or there is something wrong with the motherboard of the xbox 360. The best way is to buy the warrenty now and send it to the xbox 360.

The XBox 360 is a wonderful video game console, however, with heavy usage, the laser (and/or other components in the drive) will eventually burn out.

The first signs of the laser starting to burn out is that your game will start freezing during game play. Eventually the games will stop reading altogether and you will get an "OPEN TRAY" message when you put a disc in and close the tray. What this means is that the XBox 360 thinks that there is no disc in the system.

If you click into the following U.S. based website, you can find more information about this issue, the parts to fix it yourself and you can also send your XBox 360 to them to have it repaired:

this is a rare problem which can be happening in xbox 360......this problem can be easily fix by you without having much technical knowledge too by using repair guide for xbox 360 available in net......................
thank you....
all the best...........
click here to download

Unfortunately , a new xbox360 game cant be played in a normal xbox (not xbox 360)

The problem is that the new xbox is way different on the inside than
the original xbox is. Because it is way more powerful, you can put an
old xbox game into a 360, and it will work fine (most of the time), but
if you try the reverse there is no way to make it work.

Try opening the disk tray with the 360 off.
Push a paper clip into 1 of these holes in your 360. It will pop the tray out. Grab the tray pull it out all the way. Put a game in, leave it open! Then turn your 360 on see if it boots the game.
"Your Disk tray might be going bad. It might be fixable but I will have to try it out on a bad drive which iI dont have at this time."